1.
Petitioner will pay Respondent $$$$$ in full settlement of Petitioner's mine
occupation tax and interest liability for the tax years XXXXX.

2.
The $$$$$ payment represents tax and interest liability for XXXXX production
transferred under the XXXXX, with the remaining portion of production valued
pursuant to the surrogate valuation methodology set forth in paragraph three
below.

3.
Petitioner and Respondent expressly recognize that the use of a surrogate
methodology for valuation of production in lieu of the gross value standard set
forth in the statute is necessitated by Petitioner's unique market situation,
and the current lack of either a market price or bona fide sales of ore
production.To address this valuation
problem and adhere to the statute as closely as possible, production shall be
valued as follows:

(a)
The value of production as set forth in the statute for production sold under a
bona fide contract of sale, and

(b)
To the extent that no bona fide contract of sale exists, the proportionate
profits method based on XXXXX as a first marketable product.(See Exhibit A.)

4.
Tax and interest for the tax years XXXXX remain subject to audit.The valuation methodology specified in
paragraph three will govern audits of this period.

5.
It shall be the duty of Petitioner to account for future tax under the proper
valuation method.

6.
For metalliferous minerals consumed internally, XXXXX shall use the valuation
method set forth in Exhibit A of this Stipulation as a substitute for gross
proceeds received for the sale of XXXXX.Using this valuation method, taxable value under U.C.A.59-5-201 shall be
computed by multiplying the value of XXXXX, less the $$$$$ annual exemption,
times %%%%%.The tax rate of %%%%%
shall be applied to the resulting value.

7.
This settlement agreement is strictly confidential.Petitioner and Respondent agree that the settlement terms herein
do not apply to litigation involving XXXXX and XXXXX shall be dismissed with
prejudice, upon payment by Petitioner to Respondent of $$$$$.

The
surrogate valuation methodology described in paragraph three of the Stipulation
shall be utilized until the Tax Commission promulgates a rule pursuant to
U.C.A.59-2-503, and will govern tax years XXXXX.